Federal Reserve Chairman Ben Bernanke can take most of the credit for the market's nosedive today. S&P500 retest 1065 support and rebound. I considered today as a buying opportunity provided yesterday's low 1057 hold. S&P 1057 is very significant as I mention earlier because it is the 50% fib retractment level, if market rebound from here, it will never look back. In addition we can use this number to project the next market resistances or targets.
I use the 1010.91 low, 1009.46 high and 1056.88 as second low to do a Fibonacci Projection in this up trend rally. The resistances or targets are 1112, 1145, 1179, 1200, 1233, 1289.
S&P 1113 is the 200 days moving average, 1145 is the prior resistance (actual high1150.45) on January, these two resistances are very critical, but I think the market will break the 200 days moving average 1113 this time if the current momentum keep going. It may pause at 1147 before reaching the ultimate target either at 1181 or 1203. I need to keep watching with elliott wave from now on to see if the market can really go that far. Don't worry I will keep you inform.
If you did read my prior post on 7/11/2010, you can see the fib retractment number of the second phase bear market down leg is similar to the above projection number. In the near future, we may see a hiccup, pause, correction or trend reversal, and 1110-1115, 1145-1150, 1175-1181 are the numbers you don't want to forget for the next two months or you will be sorry for the rest of your life.
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